A new Australian company is offering loans. What makes it unique is that they offer guaranteed cryptocurrency loans.
So, what do we know about Helio? How do the loans work and why would you like a cryptocurrency loan?
What is Helio?
Helio Lending has not been around for a long time; they launched only a few months ago. The team behind Helio has not just popped out of the ground, however. The team includes experts in digital currencies and blockchain, law and investments.
One might expect the team behind any cryptographic and blockchain service to be younger; and therefore potentially less experienced. While Helio has some younger faces, much of the executive committee is made up of people who have been in the business for a while.
How does a cryptocurrency loan work?
The structure of a Helio cryptocurrency loan is immediately accessible. From a banner at the top of their homepage, visitors can select which cryptocurrency they wish to use to finance the loan. They can also set the amount, repayment type, loan term and LTV. Of course, this is just to let visitors know what they could look at in terms of repayments. Customers must still request the loan. However, Helio promotes day-to-day financing and the ability to block terms.
Once the terms of the loan have been finalized and the borrower has been approved, his cryptocurrency guarantee is transferred to Helio. The company then transfers the funds to the borrower's bank account.
After the loan has been repaid, the borrower has the opportunity to reclaim their cryptocurrency. Or they can use the amount to refinance the loan or take out a new loan.
Why do you want a cryptocurrency loan?
There are a number of reasons why people might want an encrypted loan, despite nonconformity.
For one thing, there are a lot of people out there who have a lot of money in cryptocurrencies. And despite the recent decline in cryptocurrency prices, they continue to be worth much more than when the first investors bought them.
Until the adoption of mass encryption becomes a reality, there are still relatively few options for encryption holders to use their assets as collateral for loans.
This means that most people who are "cryptocurrencies but poor in money" need to sell their cryptocurrencies to use the funds to finance expensive initiatives.
In an interview with BusinessBuyInvest, John O & # 39; Shea, CEO and founder of Helio, explained:
The ability to be able to lend to people who had an advantage in encryption in space was very very exciting. And after doing a lot of research, we realized that in Australia there was no one to offer this solution. And there were only about two or three suppliers globally.
A potential game change that Helio presents is the ability to use the cryptocurrency to finance a loan for conventional funds and then get their crypto back when the loan is repaid.
Is it a cryptocurrency loan suitable for you?
If you have cryptocurrency and you need money but do not want to sell your cryptography, Helio may be right for you. However, there are a couple of other important things to consider.
First of all, Helio is still a loan service. You will actually need to qualify for the loan and you will need to be able to repay it.
Another thing to consider is that, at the time of writing, Helio accepts only a handful of cryptocurrencies. If you want to use Helio but you do not have – or you do not have enough – Bitcoin, Ethereum, Litecoin or Ripple, you will have to convert your funds. This probably means selling some of the other cryptocurrencies that you have to buy more than one of these. This may require complicated math, given the exchange rates of different cryptocurrencies.
There is also the natural concern that many people feel dealing with any new blockchain or crypto company or any new loan service. And Helio is both. However, at the moment, we have no reason not to trust Helio, even if your due diligence is obviously necessary.
And until there are other crypto-friendly lenders, there are not many options available for the types of services offered by Helio.
What do cryptographic loans mean for the market?
Since institutional investors are officially entering the encrypted market,
a real institutional investment will be possible – how do you mention one of the Helio customers on the company website –
through platforms such as Helio Lending.
By offering mentors the opportunity to obtain liquidity on their blockchain assets, without selling them completely, it changes the long-term perspectives for cryptocurrency.
Because Helio is currently providing a unique service in the offer of cryptographic supported loans,
it is certainly worth keeping the company in mind; in addition to looking for other companies, new or family members, who could start offering similar services.